PARIS--(BUSINESS WIRE)--Regulatory News:
Veolia (Paris:VIE) plans to notify investors of its intention to redeem its deeply subordinated perpetual hybrid debt in Euros and in Sterling issued in January 2013, for respective nominal amounts of €1 billion and £400 million.
These instruments were issued to support the Group's transformation, and were aimed at strengthening its financial structure, being considered as 100 % equity in the IFRS consolidated accounts and 50 % equity by the rating agencies1.
Thanks to the success of the Group’s transformation and the improvement of its financial health, Veolia no longer needs these instruments and can save the associated coupon of €68 million per year, while maintaining an Investment Grade rating and significant financial flexibility.
In 2017, Veolia took advantage of extremely favorable market conditions to anticipate this repayment, which is expected to occur on April 16, 2018.
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Veolia group is the global leader in optimized resource management. With over 163 000 employees worldwide, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and to replenish them.
In 2017, the Veolia group supplied 100 million people with drinking water and 61 million people with wastewater service, produced 44 million megawatt hours of energy and converted 45 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €25.13 billion in 2017. www.veolia.com
1 Moody’s and S&P. The latter removed the Equity Content in May 2016, thanks to Veolia’s improved financial position, and considered that Veolia did not need it anymore to maintain its credit rating.